The offshore yuan strengthened to around 6.82 per dollar on Wednesday, advancing for a fourth straight session and marking its highest level since February 2023. The move was largely driven by a weaker US dollar following news of a ceasefire agreement.
President Donald Trump announced that the United States and Iran had reached a two-week ceasefire deal, narrowly avoiding what he had earlier warned could become an attack with catastrophic consequences for the region. Shortly after the announcement, Iranian Foreign Minister Seyed Abbas Araghchi said that access to the Strait of Hormuz would be possible through coordination with Iran’s Armed Forces.
On the domestic front, investors are now focused on China’s upcoming inflation data, due later this week. Analysts expect a modest uptick in annual consumer prices, while producer prices are forecast to post their first year-on-year increase since September 2022.
